Tax Incidence, Market Power, and Bargaining Structure
AbstractThis paper considers the incidence of both factor taxes and an income/consumption tax in a general equilibrium model with unionized labor markets and imperfectly competitive product markets, focusing especially on the implications of different bargaining structures in the labor market for tax incidence. The determinants of tax incidence are shown to be very different from the competitive case; in particular, more than 100 percent shifting of general, as opposed to sector specific wage and income/consumption taxes is possible, and the shifting of the wage tax generally increases, rather than decreases, with the elasticity of substitution between labor and capital in production. Also, changes in firm market power and union bargaining power are shown to have counterintuitive effects on the degree of shifting of taxes. Copyright 1990 by Royal Economic Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 42 (1990)
Issue (Month): 1 (January)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Szabolcs Deák & Lionel Fontagné & Marco Maffezzoli & Massimiliano Marcellino, 2012.
"The banking and distribution sectors in a small open economy DSGE Model,"
RSCAS Working Papers
2012/53, European University Institute.
- Szabolcs Deák & Lionel Fontagné & Marco Maffezzoli & Massimiliano Marcellino, 2012. "The banking and distribution sectors in a small open economy DSGE Model," Working Papers 454, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Silvia Rocha-Akis & Ronnie Schöb, 2010.
"Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms,"
CESifo Working Paper Series
3032, CESifo Group Munich.
- Silvia Rocha‐Akis & Ronnie Schöb, 2011. "Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 93-119, 03.
- Rocha-Akis, Silvia & Schöb, Ronnie, 2009. "Welfare policy in the presence of unionised labour and internationally mobile firms," Discussion Papers 2009/14, Free University Berlin, School of Business & Economics.
- Kjell Erik Lommerud & Bjørn Sandvik & Odd Rune Straume, 2004.
"Good Jobs, Bad Jobs and Redistribution,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 106(4), pages 703-720, December.
- Lommerud, K.E. & Sandvik, B. & Straume, O.R., 2001. "Good Jobs, Bad Jobs and Redistribution," Norway; Department of Economics, University of Bergen 1401, Department of Economics, University of Bergen.
- Lommerud, Kjell Erik & Sandvik, Bjørn & Straume, Odd Rune, 2002. "Good jobs, bad jobs and redistribution," Discussion Papers, various Research Units FS IV 02-21, Social Science Research Center Berlin (WZB).
- Kjell Erik Lommerud & Bjørn Sandvik & Odd Rune Staume, 2003. "Good Jobs, Bad Jobs and Redistribution," CESifo Working Paper Series 1022, CESifo Group Munich.
- Lommerud, Kjell Erik & Bj¯rn Sandvik & Odd Rune Straume, 2002. "Good jobs, bad jobs and redistribution," Royal Economic Society Annual Conference 2002 131, Royal Economic Society.
- Lommerud, Kjell Erik & Sandvik, B. & Straume, Odd Rune, 2003. "Good Jobs, Bad Jobs and Redistribution," CEPR Discussion Papers 4115, C.E.P.R. Discussion Papers.
- Edward Calthrop & Bruno Borger, 2007. "On Tax Over-Shifting in Wage Bargaining Models," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(2), pages 127-143, June.
- Kolm, Ann-Sofie, 1998. "Differentiated payroll taxes, unemployment, and welfare," Journal of Public Economics, Elsevier, vol. 70(2), pages 255-271, November.
- Sophia Delipalla & Peter Sanfey, 1998.
"Commodity Taxes, Wage Determination and Profits,"
Studies in Economics
9816, Department of Economics, University of Kent.
- Clemens Fuest & Bernd Huber, .
"Tax Coordination and Unemployment,"
EPRU Working Paper Series
97-26, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Silvia Rocha-Akis, 2006. "Labour tax policies and strategic offshoring under unionised oligopoly," Department of Economics Working Papers wuwp099, Vienna University of Economics, Department of Economics.
- Chae, Suchan, 2002. "Tax incidence with bargaining," Economics Letters, Elsevier, vol. 77(2), pages 199-204, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.